AMZN - short term technical resistance at 230-233

Sep 26, 2011

A short term trade where AMZN has rallied into levels where sellers have emerged three times in the past 6 sessions. 234 stop loss for 1/2 position, 238 stop on 2nd 1/2 position. Target initially 220, then 216. This is a 3:1 reward/risk trade and it has 40% probability of working. The "SELLERS EMERGE" levels are key supply levels and represent a seller dumping stock onto the market. These are key levels to trade off of and if we don't see sellers re-emerge at these levels then there is a good chance this was just a pause in a much larger advance for AMZN. Otherwise, this is a low-risk place to sell short. Disclosure, I am putting this trade on for myself and risking 0.2% of my trading capital.